The Government of India’s Offer for Sale (OFS) of its equity in the Housing and Urban Development Corporation (HUDCO) has received an enthusiastic response from non-retail investors today. The issue was subscribed 2.10 times of the base size, indicating strong investor confidence in the corporation.
The OFS, which was opened to non-retail investors, saw a significant oversubscription. This robust response from the market has led the government to decide to exercise the green shoe option. The green shoe option, or over-allotment option, allows the government to sell more equity than initially planned if the demand is high.
The government’s decision to exercise this option underlines the success of the OFS and is a testament to HUDCO’s strong market position and future growth prospects.
Retail investors will get their chance to bid on the OFS tomorrow. Given the strong response from non-retail investors, the retail portion of the OFS is also expected to see significant interest.
This successful OFS marks a key step in the government’s ongoing efforts to divest its stake in public sector undertakings. The funds raised from this OFS will be used to boost public expenditure and stimulate economic growth.
